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The Shiba Inu had a rough year. The token is down almost 70% year-to-date and more than 90% from its all-time high. With interest in meme coins fading, many are now wondering if SHIB is dying a slow death.
This concern increased after Cryptoquant CEO Ki Young Joo said that meme coins are “dead”, citing a collapse in dominance and decreased speculation. On the surface, the Shiba Inu seems to fit this narrative. But the data on the chain adds additional layers to the story.
The weakness of the meme is real, and the Shiba Inu reflects it
The wider meme market is clearly weakened. CryptoQuant data is shown The dominance of meme coins fell to their lowest levels in early 2024, indicating a decrease in speculative activity in altcoins.
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The Shiba Inu reflects this trend. The price remained below long-term resistance, and the rally failed to hold. Smart wallets, which track experienced and active traders, reduce… Phase out SHIB exposure All year round.
This suggests that traders are not looking for short-term bounces. Simply put, conscious traders do not rely on price increases, not to mention peaks.
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A recent piece of derived data reinforces this view. Over the past 30 days, most perpetual futures traders have reduced their exposure. Outside of the biggest titles, influence remains weak. This shows that traders are cautious and not expecting a quick or explosive move.
In simple terms, the speculation has stopped. This supports the idea that meme coins are no longer driving the market like before. But speculation is only part of the equation.
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Catches and holders continue to add as exchanges exit coins
Despite the weak price action, the long-term behavior tells a different story.
Shiba Inu Holder Count, which tracks the number of wallets that hold SHIB, has continued to grow throughout the year. It started at about 1.46 million and grew to about 1.54 million. Growth has not been smooth, but the trend remains positive, even though prices have fallen sharply.
The whale data is even more impressive.
In the past year, the main holders have increased their SHIB balances His is about 249%, according to the image shared earlier. Giant whale stocks have increased by about 28.5%. Meanwhile, exchange balances, which show the number of tokens on trading platforms, fell by almost 22%. Fewer currencies on exchanges generally mean less immediate selling pressure.
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This trend has accelerated recently. In the last 30 days alone, whale balances have increased by more than 61%, while most of the outflows from exchanges have occurred during the same period.
This does not sound like panic or abandonment. It seems to be a slow build up.
However, it is important to note that derivatives traders are not involved in the matter. Outside of the headlines, leverage positioning remains quiet. The whales appear first, but they are not aggressive.
Shiba Inu’s price structure is still weak, but a reversal system is emerging
Price action continues in SHIB Fragile, but not without hope.
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On the three-day chart, the Shiba Inu is trading in a long-term falling wedge, a pattern that often turns bullish if the price breaks higher. Recently, a major signal appeared.
Between December 3 and December 12, the price of the Shiba Inu recorded a lower low while the Relative Strength Index (RSI), a momentum indicator, recorded a higher low. This upward divergence indicates weak selling pressure, raising the possibility of a trend reversal.
The main levels are now more important than the narrative.
The first resistance is located near $0.0000092. A clean break above this level represents a breakout from the upper trend line that has held the price since September. If confirmed, the next resistance zones are near $0.000010, $0.000011, and $0.000014, which are in line with the last swing high. Please note that breaking the level beyond just $0.0000092 can completely invalidate the “dead coin” claims.
On the downside, the structure weakened below $0.0000075. The continuous movement below this level will invalidate the reversal setup and reopen the negative risks in the market.
The Shiba Inu is not dead, but it is not strong either. Speculation is gone, traders remain cautious, and quick gains are unlikely. However, a high number of holders, the accumulation of heavy whales and low exchange balances indicate that the chain is not yet neglected.
If the altcoin cycle turns, the Shiba Inu still has a path to rebirth. For now, it remains in survival mode, waiting for stronger confirmation.
